SHOPSMITH REPORTS FISCAL 1992 FINANCIAL RESULTS
SHOPSMITH REPORTS FISCAL 1992 FINANCIAL RESULTS DAYTON, Ohio, June 11 /PRNewswire/ -- Shopsmith, Inc.
(NASDAQ: SHOP) today reported revenues of $53.0 million for its fiscal year ended March 31, 1992, up 8 percent from $49.2 million last year. Due to the weak economy, the company reported a net loss of $817,000 or $.35 per share compared to net income of $107,000 or $.05 per share last year.
Shopsmith's Chief Executive Officer, John R. Folkerth commented, "to support our strategy to provide full service to all woodworkers, we expanded our retail product offering of items made by other manufacturers. Additionally, in response to aggressive competition and the sluggish economy, we increased promotional efforts and discounts. These necessary steps reduced our gross margin percentage and raised operating and financial costs." Folkerth went on to say, "in August and September, three stores were converted to full-line woodworking stores under the name 'Woodworking Unlimited.' A fourth store was converted during the fourth quarter and we plan further conversions toward the upcoming fall. "In addition," Folkerth went on, "we continue to implement new methods of reducing operating, selling and manufacturing costs to respond to the existing environment. Our strategy is sound and will allow the company to succeed against competition and achieve better operating results as consumers regain confidence. Meanwhile, we are adjusting the organization to improve results despite current economic conditions." According to Folkerth, the first six months of the company's fiscal year is its weakest period and, during that time, the company focuses on minimizing operating losses. Shopsmith is a leader in the production and marketing of quality woodworking tools. The company markets approximately 4,000 products through mail order and through 45 company-owned stores in the U.S., Canada and Great Britain. Results for the Years Ended March 31, 1992 1991 Net sales $53,033,000 $49,211,000 Gross profit 24,052,000 24,500,000 Income (loss) before income taxes (1,224,000) 195,000 Net income (loss) (817,000) 107,000 Income (loss) per share $(.35) $.05 Average shares outstanding 2,307,000 2,254,000 -0- 6/11/92 /CONTACT: Bill Becker, vice president-finance of Shopsmith, Inc., 513-898-6070, or Shirley Thompson, vice president of Carl Thompson Assoc., Inc., 801-533-0303, for Shopsmith, Inc./ (SHOP) CO: Shopsmith, Inc. ST: Ohio IN: CST SU: ERN
SM -- CL004 -- 9086 06/11/92 08:39 EDT
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|Date:||Jun 11, 1992|
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